Legal Question in Tax Law in Georgia

IRS Tax Lien

I'm 62. About $83 was deducted from my $556 SS check it turned out to be an IRS deduction. I phoned and found I had a lien for 63k from 01-02 and I want to know what to expect from the IRS regarding this lien. I have minor funds in a bank account, minor cash on hand and have only monthly SS for 'income'. Will they seize the bank account? Keep deducting from SS? (why didn't they take all of the $556?)

When I told the guy I had nowhere near 63k and actually owed another 60-70k for heart problems, I was told it was going to be sent to 'Collections'.

Is this private debt collectors or does the IRS get involved directly.

The funds they want to tax seem to be a 300k inheritance from 02 which should have been exempt as it was well under the 600k which is allowed. It passed to me in stocks mostly. How concerned should I be about this lien and it going to 'Collections'? My thoughts are to just wait until something happens, they did nothing from 01-02 until now and perhaps they will continue to do nothing. I think I should just 'lay low' and hope they have better things to do than bother with me. What do you think?


Asked on 1/31/09, 4:28 pm

3 Answers from Attorneys
Robert Thompson J. Robert Thompson Attorney

Re: IRS Tax Lien

This claim may or may not be referred to a private debt collection agency--the IRS can refer, but may not on a debt this large. They will continue to levy on your SS benefit, but they are not by law allowed to take more than a certain maximum (which they are apparently doing. They can ( and probably will) levy your bank account, unless the balance consists solely of SS benefits.

An inheritance is not taxable, period, so this should not have been the source of the tax claim. If they treated it as taxable income, or if there is any other basis for assessing the tax, you should have received numerous notices, before they levied your SS payment.

You should consult a tax attorney to find out exactly why the IRS thinks you owe this tax, and for advice on how to challenge the IRS.

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Answered on 2/01/09, 1:02 pm
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: IRS Tax Lien

I am not sure how you can say they are doing nothing, when you are writing because they took money from your check. It was a huge mistake in ignoring it before, and you likely had notice of the issue before now. See a tax lawyer to resolve it now.

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Answered on 1/31/09, 4:34 pm
Lesley Berggren The Berggren Law Firm, LLC

Re: IRS Tax Lien

You should contact the Georgia State University College of Law Tax Clinic as soon as possible to see if you qualify for their services. You can learn about the Clinic at http://law.gsu.edu/taxclinic.

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Answered on 1/31/09, 5:53 pm


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